RESULTS 2 nd QUARTER 2017 (IFRS, UNAUDITED)

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Transcription:

RESULTS 2 nd QUARTER (IFRS, UNAUDITED) July 20, Software AG. All rights reserved.

SAFE HARBOR This presentation includes forward-looking statements based on the beliefs of Software AG management. Such statements reflect current views of Software AG with respect to future events and results and are subject to risks and uncertainties. Actual results may vary materially from those projected here, due to factors including changes in general economic and business conditions, changes in currency exchange, the introduction of competing products, lack of market eptance of new products, services or technologies and changes in business strategy. Software AG does not intend or assume any obligation to update these forward-looking statements. This presentation constitutes neither an offer nor recommendation to subscribe or buy in any other way securities of Software AG or any of the companies that are members of the Group at present or in the future, nor does it form part of such an offer and it should not be understood as such. This presentation does not constitute an offer of sale of securities in the United States of America. Securities may not be offered or sold in the United States of America without registration or exemption from registration in ordance with the U.S. Securities Act of 1933 in its currently valid form. 2 Software AG. All rights reserved.

CURRENCY IMPACT ON REVENUE / (6 MONTHS) 34% revenue in Euro 66% revenue in foreign currency CAD 3% AUD 3% ZAR 4% BRL 5% ILS 5% GBP 6% Other 10% US Dollar 30% Euro 34% Currency impact on revenue (in m; yoy) in % in % Licenses 0.3 1% 1.9 2% Maintenance 1.9 2% 5.8 3% Consulting & Other 0.7 1% 1.3 1% Total 2.9 1% 9.0 2% Currency split 3 Software AG. All rights reserved.

DIGITAL BUSINESS PLATFORM SEGMENT REPORT / (6 MONTHS) Licenses 35.7 38.0-6% -7% 74.1 70.6 5% 3% Maintenance 68.4 62.5 9% 8% 135.6 124.4 9% 7% Total revenue 104.1 100.5 4% 3% 209.7 195.0 8% 6% Cost of sales -6.7-7.1-6% -4% -13.8-15.3-10% -10% Gross profit 97.4 93.4 4% 3% 195.9 179.7 9% 7% Sales & Marketing -41.8-43.1-3% -4% -86.7-83.5 4% 2% Research & Development -25.0-21.7 15% 11% -48.6-43.9 11% 7% Segment result 30.6 28.6 7% 8% 60.6 52.3 16% 15% Margin in % 29.4% 28.5% 28.9% 26.8% 4 Software AG. All rights reserved.

ADABAS & NATURAL SEGMENT REPORT / (6 MONTHS) Licenses 13.2 11.6 14% 13% 21.1 38.0-44% -46% Maintenance 39.0 40.6-4% -7% 78.9 77.6 2% -3% Product revenue 52.2 52.2 0% -3% 100.0 115.6-13% -17% Other 0.1 0.1 - - 0.3 0.4 - - Total revenue 52.3 52.3 0% -3% 100.3 116.0-14% -17% Cost of sales -1.9-3.0-37% -32% -4.8-6.2-23% -22% Gross profit 50.4 49.3 2% -1% 95.5 109.8-13% -17% Sales & Marketing -8.0-8.7-8% -8% -16.1-19.0-15% -17% Research & Development -6.0-5.6 7% 3% -12.0-11.0 9% 7% Segment result 36.4 35.0 4% 0% 67.4 79.8-16% -20% Margin in % 69.6% 66.9% 67.2% 68.8% 5 Software AG. All rights reserved.

CONSULTING SEGMENT REPORT / (6 MONTHS) Total revenue 50.9 50.5 1% 0% 103.2 98.6 5% 3% Cost of sales -38.9-41.6-6% -8% -80.8-83.4-3% -5% Gross profit 12.0 8.9 35% 35% 22.4 15.2 47% 48% Sales & Marketing -4.9-4.2 17% 16% -9.9-8.6 15% 14% Segment result 7.1 4.7 51% 52% 12.5 6.6 89% 92% Margin in % 13.9% 9.3% 12.1% 6.7% 6 Software AG. All rights reserved.

RESULTS / (6 MONTHS) Total revenue 207.4 203.4 2% 1% 413.3 409.6 1% -1% Cost of sales -51.6-54.5-5% -6% -106.6-110.5-4% -5% Gross profit 155.8 148.9 5% 3% 306.7 299.1 3% 0% Margin in % 75.1% 73.2% 74.2% 73.0% Research & Development -30.9-27.4 13% 12% -60.7-54.9 11% 10% Sales & Marketing -59.3-60.4-2% -3% -121.7-120.0 1% 0% Administration -19.5-19.1 2% 1% -38.0-38.3-1% -2% Other income / expense 2.0 1.3 - - 3.3 2.8 - - EBIT 48.1 43.3 11% - 89.6 88.7 1% - Margin in % 23.2% 21.3% 21.7% 21.7% 7 Software AG. All rights reserved.

NON-IFRS EARNINGS / (6 MONTHS) % % EBIT (before all taxes) 48.1 43.3 11% 89.6 88.7 1% Amortization on acquisition related intangible assets 8.5 7.2 18% 16.3 14.5 12% Share based payments 3.7 4.7-21% 8.7 7.1 23% Restructuring / severances / legal case 0.7 0.2-2.3 4.2 - Other impacts / impacts from M&A activities 0.3 0.4-25% 0.7 0.5 40% EBITA (Non-IFRS) 61.3 55.8 10% 117.6 115.0 2% in % of revenue (Non-IFRS) 29.5% 27.4% 28.4% 28.1% Net income (Non-IFRS) 40.2 36.7 10% 77.5 75.5 3% EPS in (Non-IFRS)* 0.54 0.48 13% 1.03 0.99 4% * Weighted average shares outstanding (basic) : 74.8m / : 76.2m / 6m : 75.3m / 6m : 76.2m 8 Software AG. All rights reserved.

CASH FLOW / (6 MONTHS) % % Operating cash flow 46.6 58.4-20% 108.4 120.3-10%./. CapEx* -4.1-4.6-22.6** -6.0 Free cash flow 42.5 53.8-21% 85.8 114.3-25% in % of revenue 20.5% 26.5% 20.8% 27.9% Free cash flow per share*** 0.57 0.71-20% 1.14 1.50-24% * Cash flow from investing activities except acquisitions and except investments in debt instruments ** yoy change because of one time property investment at Darmstadt *** Based on weighted average shares outstanding (basic) : 74.8m / : 76.2m / 6m : 75.3m / 6m : 76.2m 9 Software AG. All rights reserved.

BALANCE SHEET June 30, Assets Dec. 31, June 30, Liabilities Dec. 31, 303.8 60.3 235.2 68.5 Cash and cash equivalents Financial assets Trade and other receivables Non-financial assets 374.6 59.4 305.9 55.7 308.5 285.3 163.2 Financial liabilities Other liabilities Deferred income 301.5 327.0 133.1 1,165.9 Fixed assets (Goodwill 940.5/ 936.6) 1,161.6 1,076.5 Shareholders equity (ratio 58.7% / 61.1%) 1,195.6 1,833.5 Total 1,957.2 1,833.5 Total 1,957.2 10 Software AG. All rights reserved.

OUTLOOK FULL YEAR FY FY Outlook (as of July 17, ) Product Revenue Digital Business Platform Product Revenue Adabas & Natural 441.4 233.9 +5% to +10% 1) -2% to -6% 1) Operating Margin Group (non-ifrs) 2) 31.2% 31.0% to 32.0% 1) At constant currency rates 2) Adjusted for non-operating items (see non-ifrs earnings results) 11 Software AG. All rights reserved.

APPENDIX 12 Software AG. All rights reserved.

HEADCOUNT BY FUNCTIONAL AREAS* AND GEOGRAPHY (in FTE) June 30, Dec. 31, % June 30, % yoy Total 4,570 4,471 2% 4,318 6% Consulting & Services 1,920 1,914 0% 1,839 4% Research & Development 1,158 1,110 4% 1,044 11% Sales & Marketing 888 842 5% 840 6% Administration 604 605 0% 595 2% Germany 1,183 1,148 3% 1,136 4% USA 597 601-1% 564 6% India 785 766 2% 696 13% Rest of world 2,005 1,956 3% 1,922 4% * According to P+L structure 13 Software AG. All rights reserved.

EARNINGS / (6 MONTHS) % % EBIT (before all taxes) 48.1 43.3 11% 89.6 88.7 1% Financial result 0.2-0.1-0.0-0.6 - Profit before taxes 48.3 43.2 12% 89.6 88.1 2% Other taxes -1.8-1.5 20% -3.7-2.9 28% Income taxes -15.2-13.5 13% -27.3-27.6-1% Tax rate in % 35.2% 34.7% 34.6% 34.6% Net income 31.3 28.2 11% 58.6 57.6 2% EPS in * 0.42 0.37 14% 0.78 0.75 4% * Weighted average shares outstanding (basic) : 74.8m / : 76.2m / 6m : 75.3m / 6m : 76.2m 14 Software AG. All rights reserved.

AMORTIZATION / DEPRECIATION IMPACT (PRELIMINARY) Q1 Q1 FY * FY 2018* FY 2019* Amortization 7.8 7.88.5 32.1 22.2 19.9 Depreciation 2.9 2.9 2.9 11.6 11.6 11.6 * Estimated 15 Software AG. All rights reserved

REVENUE / (6 MONTHS) Product revenue 156.3 152.7 2% 1% 309.8 310.6 0% -3% Licenses 48.9 49.6-1% -2% 95.2 108.6-12% -14% Maintenance 107.4 103.1 4% 2% 214.6 202.0 6% 3% Consulting 50.6 50.4 0% -1% 102.7 98.3 4% 3% Other 0.5 0.3 - - 0.8 0.7 - - Total 207.4 203.4 2% 1% 413.3 409.6 1% -1% 16 Software AG. All rights reserved.

Investor Relations Uhlandstrasse 12 64297 Darmstadt Germany T: +49 (0) 6151 / 92 1900 F: +49 (0) 6151 / 9234 1900 W: softwareag.com E: investor.relations@softwareag.com 17 Software AG. All rights reserved.

18 Software AG. All rights reserved.